Vietnam Sets a 6,000MW Wind Power Target by 2030, 2.1% in Energy Mix
Updated: Apr 5, 2019
Vietnam plans to deploy 6000MW cumulative capacity of wind power by 2030, which will occupy 2.1% of the country’s energy structure, according to the revised Master Plan #7.
The Vietnamese government has been determined to speed up its deployment of renewable energy, especially small hydro, wind and solar energy.
In the revised Master Plan#7, it is expected to install totally 6,000MW wind and 12,000MW solar energy facilities by 2030, which will contribute into 2.1% and 3.3% of the whole energy mix.
Currently, the installation capacity of renewables, involving small hydro, in Vietnam is about 3,310MW, 7% of the whole energy generation structure with 47,232MW.
Among this, for wind power, there are 8 projects around Vietnam with 303MW in total, including one project on Phu Quy Island. Furthermore, about 4,800MW wind capacity has been approved in provincial or national power master plans, and approximately 7,400MW is proposing for approval. Also, there are 920MW PPA (Power Purchase Agreement) deals signed till now.
Vietnam provides FiT (Feed-in-Tariff) to renewables projects to boost the development of renewable energy, particularly in wind, solar and small hydro. For wind power, on-shore projects will be offered 8.5 UScents/kWh, and off-shore ones will gained 9.8 UScents/kWh. The FiT scheme is valid until 1st November 2021. As for PPA trend, there has been template PPA already for 20 years.
Besides, the corporate income tax rate for renewables companies is 10% in 15 years with exemption for the first four years and 50% reduction in the next 9 years. The import tax of relevant renewables facilities is also exempted.
According to the government, all electricity generated from renewables projects should be obligatorily bought by EVN, Electricity of Vietnam.
Despite a positive blueprint for wind power provided by Vietnam, there are still several challenges on which the government decides to take active solutions.
(1) The guideline of Planning Law implementation should be issued as soon as possible.
(2) Law of the Sea of Vietnam should be seriously taken into consideration before deploying offshore projects.
(3) The FiT scheme will expire after 1st November 2021, according to Decision 39. There may not be enough time for big offshore projects. And what’s the next after the FiT mechanism should be determined.
(4) New regulations should be added into the mission, such Renewable Portfolio Standard (RPS), Renewable Energy Certificates (RECs), Direct PPA, Energy Storage System (ESS) and so on.